NEW YORK, March 16. /TASS/. A sharp rise in oil and gas prices amid the US and Israeli military operation in Iran could deal a devastating blow to the European economy, but European authorities lack the means to mitigate its consequences, The Wall Street Journal (WSJ) reported.
The public debt of some European countries, particularly the UK and France, is reaching 60-year highs, according to the publication. Borrowing costs are rising across the continent, with businesses and households lacking the cushion of government payments such as those used during the COVID-19 pandemic. In 2022, when energy prices in the European Union soared due to the refusal to import from Russia, EU governments allocated billions of euros to support households and businesses. This time European governments lack such financial resources, the publication said.
At a plenary session of the European Parliament on March 11, European Commission President Ursula von der Leyen announced a 50% increase in gas prices, and a 27% rise in oil prices in the European Union since the beginning of the conflict in the Middle East. The first 10 days of the conflict cost European taxpayers an additional 3 bln euros spent on fossil fuel imports, she said.